House valuation

Hi,
Selling my house and got sale agreed, the buyers bank got a valuer who's a local insurance broker to come out. Next day i heard he'd valued house 25k less than sale price.
Mines a semi-d and he compared it with a end terrace. Ignoring a simliar semi thats 50k more than mine! This has caused banks to reduce loan offer to buyer and potential loss off sale for me and buyer. Is there anything i can do? very stressed as it was hard enough getting to this stage and house has been reduced by over 100k in last year alone?

There is very little that you can do. The valuer is on a panel authorised by the bank. In the past the valuers were allowed a greater degree of freedom on the valuations that were put on property. Valuers have been struck off Bank panels for not being cautious enough and they are protecting their own employment by being extremely conservative.

Nowadays they have to compare prices to similar properties in the same area that have been sold rather than ones that are for sale.

They dont have to be identical properties and if they overvalue the property and the bank does a second valuation that comes in lower, then the original valuer may lose his authorisation from that bank.

hivas9 said:

Hi,
Selling my house and got sale agreed, the buyers bank got a valuer who's a local insurance broker to come out. Next day i heard he'd valued house 25k less than sale price.
Mines a semi-d and he compared it with a end terrace. Ignoring a simliar semi thats 50k more than mine! This has caused banks to reduce loan offer to buyer and potential loss off sale for me and buyer. Is there anything i can do? very stressed as it was hard enough getting to this stage and house has been reduced by over 100k in last year alone?

Click to expand...

I think you are lucky and need to get in to the real world.
If you want to sell, which at least you have an option to do, you have to go with the banks valuation of your property. Full stop.

Accept and get a move on as its likely the Dec budget will make property sales even harder in the new year.

If you are trading up then your bank might also price the house you are moving to realistically, with a saving to you. If you taking the money and running/ renting then you will just have 25K less.

hivas9 said:

Mines a semi-d and he compared it with a end terrace. Ignoring a simliar semi thats 50k more than mine!

Click to expand...

Is this similar semi-d on the market at €50k more than yours was valued at or has this sold recently for €50k more than yours was valued at?

If the latter you may have a case.

From speaking to valuers, in this market they are basically working on comparables, if they don't have a comparable recent sale then they are erring on the side of caution and marking down property values. They are asked by the bank to put a value on the property not to report what the agreed price is.

www.moneybackmortgages.ie

The similar one is for sale, as regards agreeing with banks price drop. I thought that market value was price someone was willing to pay Was this not always the case? How else is the market value established? Also this valuer is a competiter of estate egent selling house who also does valuations and have had previous disagreements maybe hidden agenda.

If the banks are going to devalue houses after a sale is agreed then NO sale will go through as buyer will have a shortfall. Maybe this is a get out for the banks who really don't want to lend at the moment.

hivas9 said:

Maybe this is a get out for the banks who really don't want to lend at the moment.

Click to expand...

Got it in one. Did you not know that we are all to blame for the collapse in Ireland. It was a complete fiasco. A downright game of chasing values, something similar to Musical Chairs - and the last one standing has get caught. And yes we are all sore. Your post in interesting. Valuers saying something without real knowledge. Maybe these are the people that are responsible. But without any good reason they are asked for a professional opinion.

I think so, but the problem now for people if this is the case? is that first time buyers are'nt being let buy thus stopping the whole market.
I thought the whole point of bailing out the banks was to get credit into the market but it seems they are keeping it all for there own purposes :mad: I'm not looking to speculate just to move house and so is the buyer. But now i can't even do this very frustrating. As well as costing me thousands in expenses to get to this stage, people be warned!

Would be interesting to hear if other people are having the same problem?